Last Monday, October 2, the European Commission approved an expansion of Spain’s recovery fund allocations. The total now stands at 163,000 million, with 93.5 billion added. A little more than half of this new total is provided as loans while the rest appears as grants, reflecting the shifting balance between grants and loan instruments in the support framework.
One notable item in the updated plan is the extended rehabilitation timeline for Spain’s residential housing stock. In practical terms, the extension allows the deadline for eligible rehabilitation projects to be pushed into the last quarter of 2024, expanding the window for homeowners to qualify for tax relief on rehabilitation work.
According to Brussels documents, Spain proposed wording changes that would not only authorize the completion of renovation works but also authorize the government to grant assistance for carrying out such works. The proposal acknowledges delays caused by slower uptake of helplines and other administrative steps, while inflation and higher material costs have reduced demand for renovations.
News outlets report that the extension is linked to delays in implementation of renovation initiatives, with the aim of maintaining momentum despite inflation and rising material prices that have dampened expected renovation activity.
European aid for rehabilitation
The plan outlines three support lines. Two target private homes and one covers entire buildings. For private residences, assistance ranges from 20 to 40 percent of energy rehabilitation costs, with caps of 5,000 or 7,000 euros. For complete buildings, the subsidy rate can reach up to 60 percent, with a maximum of 15,000 euros.
How can homeowners determine potential funding for rehabilitation?
The Ministry of Transport, Mobility and Urban Agenda has released an aid simulator to help citizens estimate possible subsidies. The tool enables users to model energy consumption for their building, explore different energy-saving improvements, and verify eligibility for the New Generation aid program. This resource allows property owners to approximate the cost of renovations and the remaining subsidy they may receive under the plan.
Using the simulator, individuals can input their address through a map linked to the Cadastre and select various upgrade options for accessibility, roofing, structural work, facade improvements, or energy efficiency. The tool then provides a projected renovation cost and an estimated subsidy amount based on the chosen options, helping homeowners plan their projects and funding strategy under the current framework.